HDBank's H1 2024 profit reaches $323 billion
HDBank's H1 2024 profit reaches $323 billion
HDBank has announced its financial statement for the second quarter of 2024, with a pre-tax profit of over $322.8 million for the first half of the year, up 48.9 per cent on-year.
HDBank has seen improvements in its operational efficiency and prudential indicators, demonstrating that the bank is on the right path with its sustainable development strategy.
According to the financial statement, as of June, HDBank posted a credit growth rate of 13 per cent compared with the beginning of the year. Its credit flows into spearhead economic sectors such as agriculture, rural areas, small- and medium-sized enterprises, supply chain financing, green credit, and tourism.
HDBank also maintains its capital adequacy ratio and bad debt ratio at the lowest level in the industry. Specifically, its ratio according to Basel II standards reached 13.9 per cent. Meanwhile, its consolidated non-performing loan ratio, including consumer finance, was only 1.59 per cent.
In the first half of 2024, the bank recorded its revenues of over $636.9 million, up by 32.9 per cent on-year. Its pre-tax profit reached over $322.8 million, up 48.9 per cent on-year, fuelled by increased operational efficiency and digital transformation initiatives. Return on equity and return on assets were 26.1 per cent and 2.1 per cent, both higher than the previous year.
The bank continues its tradition to pay attention to the benefits of investors with a consistent and high annual dividend payout ratio. This year, shareholders receive dividends of up to 30 per cent. HDBank has so far completed a dividend payment of 10 per cent in cash, with the remainder iin stocks scheduled for the third quarter.
As of June 30, HDBank’s total assets were worth over $24.7 billion, a 29 per cent increase compared to last year’s period. Total deposits were $21.8 billion, of which deposits from digital banking channels reached $1.58 billion, quintupling the figure of last year’s period.
In the first six months of 2024, HDBank marks a new step forward in its journey to comprehensively implement the environmental, social, and governance (ESG) strategy.
It became the first bank to release the Sustainable Development Report based on international standards, reflecting HDBank’s commitments to implementing ESG principles towards realising the goal of becoming a net-zero bank by 2050.
The lender has also established an committee under the Board of Directors to direct and supervise the comprehensive integration of ESG standards into all of its activities.
The bank has also achieved positive outcomes thanks to its focus on digitalisation and development of modern digital businesses, as well as research and application of AI technology.
The number of customers using its digital channels climbed by 2.5 times from a year ago, with 94 per cent of customers’ transactions being conducted on digital channels and the number of e-banking transactions jumping by 130 per cent on-year.
In addition to rolling out new products and cashless payment solutions, HDBank has completed ahead of schedule the deployment of biometric facial recognition technology to improve transaction safety and overall security. The bank also launched the "HDBank rural" application dedicated to developing agriculture and rural areas in a modern and effective manner.
HDBank has earned recognition from prestigious international organisations for its impressive business growth and achievements in digitalisation and greening. On July 4, the bank was named Domestic Retail Bank of the Year and Mobile Banking and Payment Initiative of the Year for Vietnam from Asian Banking & Finance Magazine.
Previously, the bank scooped up the Best Bank for Sustainable Finance award from The Asset magazine. In addition, HDBank also featured in Fortune magazine’s first-ever Southeast Asia 500 rankings of the largest companies in the region.
